In its first study of the Asset Owner 100 (AO100), the Thinking Ahead Institute describes this unique group as being responsible for investing the “most influential capital on the planet”, with the discretion to place their capital into any country and into any asset class. As such, the report argues, they have the ability to shape capital markets and to play a key role in the smooth running of the global economy.
Roger Urwin, Global Head of Investment Content at the Thinking Ahead Institute, said: “With around US$55 trillion in assets - a sum that is more than $10,000 for every adult on the planet - asset owners globally are too important to fail in their mission. They have little choice but to take their financial and social responsibilities seriously, and not to shirk the big issues. These include the need to develop stronger leadership, respond effectively to regulation, manage agency issues and improve control over outcomes.
“There is also a more over-arching need for these large asset owners to understand the world in which they operate, and over which they potentially hold such influence. Over the next decade, this means doing more to institutionalise professionalism, streamline operating models, leverage culture and diversity more effectively and evolve the investment model into increasingly smart and sustainable arrangements.”
The Thinking Ahead Institute’s analysis found that 61% of the assets of the AO100 are held by pension funds, with 32% held by sovereign wealth funds and 7% by outsourced CIOs and Master Trusts. The largest region in terms of assets under management was Asia/Pacific (36%), with 34% in Europe, the Middle East and Africa, and 30% in North America.
The top 20 funds total nearly US$11trillion in assets, accounting for 56% of the total assets of the AO100.
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